If you don’t know this method of investing money in gold, then consider that you have missed the opportunity!

We all want our money to be safe and grow, right? Some way should be found in which the risk is less and the profit is good. If you are also looking for something similar, then there is a government scheme about which you must know – its name is ‘Sovereign Gold Bond’ (SGB).

Nowadays this scheme is no less than a treasure for those who had invested money in it a few years ago. News is saying that some people’s money has almost tripled in just 5-6 years!

After all, what is so special about it? Why are we getting so much benefit?

There are not one, but three big reasons behind it being so popular, which make it different from all the other methods.

1. Direct benefits of increasing gold prices: This bond is linked to the price of gold. Meaning, as the price of gold increases in the market, the value of your invested money also increases in the same manner. You don’t have to do anything, just let the gold do its thing.
2. On top of that you get fixed interest (guaranteed): This is the funniest thing. Government on your invested money every year Fixed interest of 2.5% Also gives. This was just icing on the cake! Firstly, there is the benefit of increase in the price of gold, and on top of that there is also interest on it.
3. No worries about tax: When your bond matures after 8 years, whatever profit you earn, Not even a single rupee tax Had to give. All the profits are yours!

Then how is it better than the jewelery and coins kept at home?

When we buy gold (like jewelry or coins) at home, several concerns come along:

• Fear of theft: Gold kept at home never feels safe.
• Making Charge: While making jewellery, 10-20% goes towards making charges only.
• Tension of purity: There is always a concern about how pure the gold is.

But there is no problem in gold bonds. It remains in your demat account like a certificate, completely safe. And if needed, you can also take a loan from the bank in return.

So should you also invest money in it?

If you want to make a safe investment for the long term and want to take advantage of the rising prices of gold, then this can be a great option for you. The government gives an opportunity to buy it from time to time. You can easily invest in it through your bank, post office or stock broker.

But yes, before taking any big decision, definitely consult a wise person in your house or a financial expert.